Decrease in Core Revenue and Increase in NPL Results in Massive Decline in Net Profits by 93.55% for Forward Microfinance Laghubitta for FY 2079/2080
Thu, May 11, 2023 11:36 AM on Latest,
Forward Microfinance Laghubitta Bittiya Sanstha Limited (FOWAD) published the third-quarter report of FY 2079/2080 with a massive decline of 93.55% in Net Profit. As per the report published by the company, the net profit decreased to Rs. 4.36 crore as compared to Rs. 67.65 crore in the corresponding quarter of the previous year.
The deposits of the company increased by almost 10% to Rs 8.45 Arba. Meanwhile, the company’s loans and advances to MFIs and cooperatives has decreased slightly by 3.32% to 19.54 Arba in this quarter.
The net interest income (core revenue) has decreased by 32.03% to Rs. 73.26 Crores compared to Rs. 1.07 Arba in the corresponding quarter of the previous year.
The paid-up capital of the company stood at Rs. 1.05 Arba after recording an increase of 25% compared to corresponding quarter of the previous fiscal year.
The company Non-Performing Loan (NPL) has spiked to 5.88 % from only 1.86 % and as a result the company Net profits have declined.
Its annualized earnings per share (EPS) stands at Rs. 5.51 compared to Rs. 106.81 in the third quarter of FY 2078/79. The net worth per share is Rs. 258.58. The company traded at a P/E multiple of 233.16 times. Similarly, the company’s shares were traded at Rs. 1285 on the last day of the quarter.
Major Financial Highlights:
| Particulars (In Rs '000) | Forward Microfinance Laghubitta | ||
|---|---|---|---|
| Q3 2079/80 | Q3 2078/79 | Difference | |
| Paid Up Capital | 1,055,563.73 | 844,450.99 | 25.00% |
| Reserves | 995,140.14 | 841,066.71 | 18.32% |
| Retained Earnings | 678,814.33 | 1,116,643.84 | -39.21% |
| Borrowings | 20,833.33 | ||
| Deposits | 8,450,120.17 | 7,684,125.07 | 9.97% |
| Loans & Advances to MFIs and Cooperatives | 19,545,986.37 | 20,217,688.02 | -3.32% |
| Net Interest Income | 732,699.40 | 1,077,950.61 | -32.03% |
| Personnel Expenses | 358,772.06 | 432,182.41 | -16.99% |
| Impairment Charges | 485,578.28 | ||
| Write Back | 65,330.83 | ||
| Operating Profit | 62,745.51 | 965,243.68 | -93.50% |
| Net Profit | 43,630.81 | 676,450.67 | -93.55% |
| Distributable Profit/(Loss) after P/L appropriation and Regulatory Adjustment | 678,814.33 | ||
| Capital Adequacy (%) | 13.10 | 12.59 | 4.05% |
| NPL (%) | 5.88 | 1.86 | 216.13% |
| Cost of Fund (%) | 10.44 | 8.70 | 20.00% |
| EPS (In Rs.) | 5.51 | 106.81 | -94.84% |
| Net Worth per Share (In Rs.) | 258.58 | 331.83 | -22.07% |
| PE ratio (times) | 233.16 | ||
| Qtr End Market Price | 1285 | - | - |
